a. Timingb. Revenue recognition criteria3. Cash collectiona. Sales discountsb. Sales returns and allowancesc. Control of cash4. Accounting for non-payment by credit customersa. The allowance methodb. Bad debt accounting examples5. Evaluating receivables management6. Recording warranty and service costs associated with a sale7. Reconciling the bank accountB. Inventory and the cost of sales (Chapter 7)1. Inventory and cost of goods solda. Definition of inventoryb. Costs included in inventory costc. Ownership of inventoryd. Ending inventory and costs of goods sold2. Accounting for inventory purchases and salesa. Overview of perpetual and periodic systemsb. Perpetual and periodic journal entries3. Counting inventory and calculating cost of goods solda. Taking a physical count of inventoryb. The income effect of an error in ending inventory4. Inventory cost flow assumptionsa. Specific identificationb. First in, first out (FIFO)c. Last in, first out (LIFO)d. Averaging5. Evaluating investment managementa. Evaluating the level of inventoryb. Number of days’ purchases in accounts payable6. Inventory errors7. Complications of the perpetual method with LIFO and average cost8. Reporting inventory at amounts below costa. Inventory valued at net realizable valueb. Inventory valued at lower of cost or marketC. Completing the operating cycle (Chapter 8)1. Employee compensationa. Payrollb. Compensated absences (for example: sick leave)c. Bonuses2. Taxesa. Sales taxesb. Property taxesc. Income taxes3. Contingencies4. Capitalize vs. expensea. Research and developmentb. Advertising5. Summarizing operations on an income statementa. Other revenues and expensesb. Extraordinary itemsc. Earnings per share
9EF/ABd. Differing income statement formatsIV. Investing and Financing Activities 25 PERCENTOFEXAM|34 HOURSOFSTUDYCh. 9,Investments: Property, Plant, and Equipment and Intangible AssetsCh. 10,Financing: Long-Term LiabilitiesCh. 11,Financing: EquityA. Investments: Property, plant, and equipment and intangible assets (Chapter 9)1. Long-term operating assets2. Deciding whether to acquire a long-term operating asset3. Accounting for acquisition of property, plant, and equipmenta. Assets acquired by purchaseb. Acquisition of several assets at once4. Calculating and recording depreciation expensea. Straight-line methodb. Units-of-production methodc. Partial-year depreciation calculationsd. Units-of-production method with natural resources5. Repairs and improvements6. Disposala. Discardingb. Selling7. Accounting for intangible assetsa. Amortizationb. Impairment8. Measuring property, plant, and equipment efficiencya. Evaluating the level of property, plant, and equipmentb. Industry differences in fixed asset turnover9. Accelerated depreciation methodsa. Declining-balance methodb. Sum-of-the-years’-digits method10. Changes in depreciation estimates and methodsB. Financing: Long-term liabilities (Chapter 10)1. Measuring long-term liabilitiesa. Present value and future value conceptsb.